The Australian Tax Office will be negotiating with 80 multinational giants to encourage them to pay more tax on profits ground in an attempt to restructure the tax system.

The ATO decided to negotiate after it strengthened its watch over 30 companies through their staff to find more about their businesses and what they actually do with their profits. The announcement on Wednesday came after the Organisation for Economic Co-operation and Development adopted 15 reforms to make sure no tax avoidance takes place, with 40 of the world’s biggest economies agreeing to it, the Australian reports.

According to the OECD estimate, almost US$100 billion (AU$ 139.22 billion) to US$240 billion (AU$334.14 billion) are lost due to tax avoidance schemes adopted by the MNCs per year.

A Senate inquiry was led into tech giants, such as Google, Microsoft and Apple, which found out how they book their local sales profits in lower tax jurisdictions like Ireland and the Netherlands. For instance, Apple had only paid AU$80 million in tax while their turnover was over AU$6 billion last year. Therefore, OECD has announced their move to end the scheme of "profit shifting" to low-tax countries in an attempt to evade payment of greater taxes.

Treasurer Scott Morrison and Tax Commissioner Chris Jordan cited how online giant Amazon has restructured its business in Europe, which is taken to be a response to the introduction of "Google tax"-- a British initiative to keep check on diverted tax. Although former Treasurer Joe Hockey thought of implementing the same, he restricted himself in favour of a new anti-avoidance bill that would reform the tax laws.

According to the Sydney Morning Herald, the Senate tax avoidance inquiry had led a "name and shame register" in August for companies that avoided tax obligations. However, Morrison said that the Coalition would be working with the companies, hoping of a better outcome.

"What we're doing here is working with companies, working with companies who are investing in Australia, who are employing people in Australia and we want to see, do more investing and employing in Australia to give job security and create more jobs and the best way do that is to work through these issues and the legislation provides new opportunities for the Tax Office to do that and we need to keep this on a very positive footing," he said.

Meanwhile, the Business Council of Australia, which had once cautioned the country for leading a unilateral action on tax avoidance, welcomed the OECD plan.

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